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Las reformas de la Ley Concursal durante la Gran Recesión

Author

Listed:
  • Miguel García-Posada

    (Banco de España)

  • Raquel Vegas

    (Banco de España)

Abstract

Traditionally, bankruptcy procedures in Spain have been lengthy and costly processes that have nearly always (95%) resulted in the liquidation of the insolvent firm. These dysfunctions became apparent with the large increase in bankruptcy filings during the crisis that started in 2008 and the ensuing congestion of the courts. In order to resolve these and other problems, the Bankruptcy Law has been reformed several times. The goal of this research is to analyse the impact of these reforms on two facets: the length of bankruptcy procedures and the probability of achieving a successful reorganisation, hence avoiding the firm’s liquidation. Our findings show that two of the four reforms analysed increased the percentage of reorganisations and decreased bankruptcy duration through improving the quality of insolvency administrators and by fostering out-of-court workouts for large corporations.

Suggested Citation

  • Miguel García-Posada & Raquel Vegas, 2016. "Las reformas de la Ley Concursal durante la Gran Recesión," Working Papers 1610, Banco de España.
    • Handle: RePEc:bde:wpaper:1610
    as

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    File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/16/Fich/dt1610.pdf
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    References listed on IDEAS

    as
    1. Oliver Hart, 2000. "Different Approaches to Bankruptcy," NBER Working Papers 7921, National Bureau of Economic Research, Inc.
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    5. Miguel García-Posada & Juan S. Mora-Sanguinetti, 2012. "El uso de los concursos de acreedores en España," Boletín Económico, Banco de España, issue DEC, pages 27-38, Diciembre.
    6. Aloisio Araujo & Bruno Funchal & Rafael Ferreira, 2010. "The Brazilian Bankruptcy Law Experiment," Fucape Working Papers 23, Fucape Business School.
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    Cited by:

    1. Manuel Rico & Santiago Cantarero & Francisco Puig, 2021. "Regional Disparities and Spatial Dependence of Bankruptcy in Spain," Mathematics, MDPI, vol. 9(9), pages 1-20, April.
    2. Salvador Ortí-Camallonga, 2018. "Constraints of Spanish Insolvency Law. A predictive bankruptcy model for Spanish industrial SMEs (2007-2015)," Working Papers 2018/01, Economics Department, Universitat Jaume I, Castellón (Spain).

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    More about this item

    Keywords

    bankruptcy; reorganisation; liquidation; duration analysis; competing risks;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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